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- implementation lag.
- decision lag.
- information lag.
- multiplier lag.
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- Increasing government purchases of goods and services would have a bigger multiplier effect on real GDP than decreasing taxes, dollar for dollar. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b True FalseIf the multiplier in an economy is 5, a $20 billion increase in net exports will. make sure the answer is accurate.Group of answer choices decrease GDP by $100 billion. increase GDP by $20 billion. increase GDP by $100 billion. reduce GDP by $4 billion.Which of the following is an example of transmission lag? A.None of the given answers. B.The Congress approves a stimulus package and it takes years to see an increase in economy's real GDP. C.The economy enters a deep recession, and Congress takes two months to approve an extensive tax cut bill. D.The economy enters a deep recession and Congress passes spending on public works that will take years to plan for and build.
- As the multiplier process is working on the demand side, a. firms will meet the additional demand without raising prices. b. firms will not meet the additional demand. c. firms will meet the additional demand only by raising prices. d. the multiplier process will cease creating demandPrice of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales, find out the best combination of advertisement in newspapers and magazines by using lagrangian multiplier.Define and Derive Multiplier and Accelerator.
- All of the following are reasons that spending on durable goods is volatile except durable goods are long-lived. good substitutes exist for durable goods. high prices make durable goods risky purchases. the purchase of durable goods is not affected by interest rates.How would an increase in taxes influence the size of a multiplier in a four factor modelIf the government spends 10 million and the multiplier is 5, then real GDP will increase by: Group of answer choices 10 million. 20 million. 100 million. 50 million.
